Above the Fold

What if the White House Paid You a Bonus to Work?

As America opens back up for business, many Americans remain unemployed — but lack of work might not be the only cause. As part of its multi-pronged, COVID-19-related stimulus in April, lawmakers offered a very generous bonus of $600 per week (on top of state benefits) for those out of work. Unfortunately, that very assistance may be deterring a great number of would-be employed from getting back to their jobs because the income generated from state compensation and the federal bonus (set to expire July 31) is more than they would be earning if employed. This is not only leaving companies of all sizes without proper staffing, but possibly skewing the real unemployment situation. 

To help combat the problem, legislators are expected to debate reforms and/or additional stimulus to complement the original actions taken to combat economic fallout. According to Larry Kudlow, director of the White House National Economic Council, one major consideration would be a shift in federal payments from unemployed Americans to newly employed workers who return to their jobs or find new employment. In other words, there’s a very strong possibility the U.S. government will now pay us to go back to work. Kudlow expects that these “return to work bonuses” will be smaller than the $600 stipend given to those staying home.  

Three Things 

1. Payment Processors Create Cash Crunch – Without warning, some digital payment processors like Square Inc., Worldpar, Stripe Inc. and PayPal are delaying or holding funds, worsening cash-flow problems for already cash-strapped businesses. As coronavirus-related returns rise, the processors are systematically holding portions of sales for extended periods of time. In one case, Square Inc. told a business it would begin holding 30% of transaction amounts for 120 days in order to protect the business and Square. 
2. Milk’s Balance Sheet Is a Mess – For the first time in 10 years, there’s been a jump in traditional grocery store milk sales as the household staple gained popularity due to the pandemic. Unfortunately, many restaurants, bars and hotels remain closed, straining milk demand on the commercial side. To combat this, farmers are dumping milk, culling herds and ending milking durations early to help drive prices higher (and it’s worked, for now). Competition from non-dairy alternatives like almond and soy milk also continue to erode demand. All-in-all, the future of milk prices remains as murky as the product itself.  
3. This Tax Break Seems Likely to Be Approved – As the most generous nation on Earth, Americans have also proven our willingness to give, no matter the situation. The coronavirus pandemic has only accelerated our munificence in this great time of need. To help individuals and nonprofit groups in their efforts, a bipartisan proposal to expand tax breaks for charitable donations is gaining momentum. Ideas include allowing taxpayers to deduct donations without itemizing, and greatly increasing charity-related tax breaks overall. 

Did You Know?

The Latest (Fact-Checked) COVID-19 Positives

• French researchers from the National Veterinary School in Alfort have been testing dogs’ ability to detect coronavirus in human sweat. A study of nearly 400 subjects revealed strong evidence that the canines were highly able to accurately detect the virus. Dogs could help screening at public areas and in emergency situations. 
• Late last week, New York governor Andrew Cuomo offered very positive comments as the state enters Phase 3 reopening today and tomorrow. As of June 13, the governor announced the lowest number of hospitalizations and deaths since the pandemic began.